header banner

In the last year, the price of bitcoin increased by 58% Is now the right time to give cryptocurrencies another look?

Bitcoin on Monday was trading at over $30,700 in the international market. The most popular cryptocurrency saw a spike of 58 percent in the past one year, reinvigorating a hope that was fast eroding among the crypto investors worldwide.

The price is over 98 percent higher than the 52-week low of $15,480, and is within the kissing distance of the 52-week high of $31,809.

Following the lead of bitcoins, other cryptocurrencies have risen significantly in the past few months. For instance, Ethereum traded at $1,674, over 50 percent higher than 52-week low of $1,072.

Bitcoin spiked 58% in the past one year

View Full Image

Bitcoin spiked 58% in the past one year

Ripple traded at $0.53, 72 percent higher than 52-week low of $0.3011. Solana traded at $29.53, over 2.5 times higher than the 52-week low of $8. Binance Coin traded at $221, significantly higher than the 52-week low of $202.9. And the list goes on.

There is no doubt that cryptocurrencies are infamous for extreme volatility. So, what is high today may be low tomorrow, and vice versa.

“Short-term price swings keep happening and getting carried away by upswings and grappling in fear during downturns does more harm than good to long-term investing. Having an education-first approach is an essential cornerstone for sustainable long-term wealth creation," says Rahul Pagidipati, CEO, ZebPay.

Why the spike?

VIDEO: HOW I Bought BITCOIN in 2013! The TRUTH!!! #bitcoin
Thomas Kralow

Among several positive developments for cryptocurrencies, the key one is building of broader consensus among G20 nations about adopting the broader contours of regulatory framework proposed by Financial Stability Board (FSB) and IMF.

"A false report by a media house suggesting BlackRock’s Spot BTC ETF approval led to an instant spike in BTC purchases soaring prices by $3k in 30 minutes, only to reverse the entire gains in the next half hour as more clarity emerged. However, since then, BTC has decoupled from other ‘risk on’ assets and has been inching towards $30k levels," says Parth Chaturvedi, Investments Lead, CoinSwitch Ventures.

“The recent surge in Bitcoin prices appears to be fuelled by strategic efforts from individuals and organizations with vested interests, aiming to rekindle interest from both existing and potential participants in the adoption pyramid," says Gaurav Mehta, Co-Founder and CEO of Catax- Simple Crypto Taxes.

"Bitcoin as a crucial aspect in the emerging financial system has been recognised globally. It’s only a matter of time before it not just becomes an investment option but also a transaction tool. We have witnessed high price fluctuations and volatility in the market before but with widespread adoption, the Crypto market will gain more legitimacy and trust," says Rajagopal Menon, Vice President of WazirX.

The Government of India last year imposed 30 percent capital gains tax and one percent TDS on crypto transactions, thus implicitly acknowledging the prevalence of trading in these assets. That was seen as a step towards a full-fledged regulatory framework for assets linked through blockchain.

Focus on fundamentals

VIDEO: BITCOIN: YOUR LAST CHANCE IS NOW!!! (then we snap to $100,000 in 2024)
Ivan on Tech

The industry insiders believe that this is seemingly a positive development and digital currencies are now coming of age, and the wild movements are gradually becoming a thing of the past. At the same time, they argue that not much must be deduced from the crypto’s price movement, and investors should educate themselves first about the technology.

“Bitcoin has always been and will continue to be an incredibly resilient asset with remarkable economic potential. Rather than timing the market and deciding the best time to invest, it is essential to focus on the fundamentals, conduct thorough due diligence, and invest based on one’s financial goals," adds Zebpay’s Rahul.

“Upon closer examination of the fundamentals, numerous crypto businesses are facing financial challenges, governments are intensifying regulatory measures, and from a technical standpoint, there are many alternative cryptocurrencies that outperform Bitcoin in terms of efficiency, speed, and environmental impact," adds Catax’s Mehta.

So, it is advisable to apply the conventional rules of investing in cryptocurrencies as well, and one should focus on the fundamentals of blockchain technology before intending to invest instead of waiting for the next swing to take place.

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

More Less

Updated: 23 Oct 2023, 01:37 PM IST


Article information

Author: Eric Long

Last Updated: 1698402122

Views: 849

Rating: 4.9 / 5 (35 voted)

Reviews: 92% of readers found this page helpful

Author information

Name: Eric Long

Birthday: 1938-08-24

Address: 4319 Williams Highway, East Jasonport, DE 85676

Phone: +4633828600541199

Job: Insurance Agent

Hobby: Bird Watching, Cooking, Running, Yoga, Video Editing, Chocolate Making, Pottery

Introduction: My name is Eric Long, I am a variegated, honest, welcoming, resolute, Precious, skilled, esteemed person who loves writing and wants to share my knowledge and understanding with you.